Improving liquidity through asset sales and amended repayment terms
First written in FY2020. 14 of 18 entries say "Advanced", first in FY2021-Q1. Latest entry: FY2026.
1 other company's latest entry also says "Other".
- FY2026No major investment projects expected in the following fiscal yearAnnual report
「In investing activities, there are currently no plans for large-scale investment projects, and the company expects to redeem time deposits with maturities of more than 3 months.」
While the company invested ¥2,759 million in new vessel acquisitions and other items during the current fiscal year, it states that there are currently no plans for large-scale investment projects in the following consolidated fiscal year and that it expects to redeem time deposits. - FY2026-H1Increased investment and borrowings associated with vessel acquisitionsAnnual report
「Cash used in investing activities during the interim consolidated accounting period was ¥2,687 million (an increase of ¥2,678 million in cash outflows from the previous interim consolidated accounting period). This was mainly attributable to ¥2,756 million in payments for the acquisition of property, plant and equipment.」
In addition to previous financial improvement through asset sales and debt repayment, the company invested ¥2,756 million in the acquisition of property, plant and equipment, including vessels, during the interim period and drew down ¥930 million in long-term borrowings. This indicates a fleet-renewal phase involving investment and borrowing. - FY2025AdvancedAnnual report
「T.S. Central Shipping Co., Ltd. entered into a contract on 27 September 2024 for the sale and purchase of one bulk carrier owned by the company. The details are as follows: 1. Transferee: an overseas third-party corporation; 2. Asset transferred: bulk carrier ZEN-NOH GRAIN PEGASUS (deadweight tonnage: 54,958 tons; age: 14 years); 3. Transfer date: November 2024; 4. Gain on sale of property, plant and equipment: approximately ¥1,881,511 thousand.」
Measures to sell assets and reduce interest-bearing debt have progressed, and ZEN-NOH GRAIN PEGASUS was sold. For the full fiscal year, the company recorded ¥2,197 million in proceeds from the sale of property, plant and equipment and ¥1,136 million in repayments of long-term borrowings. - FY2025-H1AdvancedAnnual report
「T.S. Central Shipping Co., Ltd., our consolidated subsidiary, entered into a contract on 27 September 2024 for the sale and purchase of one bulk carrier owned by the company. The details are as follows: 1. Transferee: an overseas third-party corporation; 2. Asset transferred: bulk carrier ZEN-NOH GRAIN PEGASUS (deadweight tonnage: 54,958 tons; age: 14 years); 3. Transfer date: November 2024; 4. Gain on sale of property, plant and equipment: approximately ¥1,881,511 thousand.」
As part of measures to improve finances through asset sales, the company entered into a contract on 27 September 2024 to sell ZEN-NOH GRAIN PEGASUS, with the transfer scheduled for November 2024 and a gain on sale of property, plant and equipment of approximately ¥1,881,511 thousand expected. - FY2024AdvancedAnnual report
「Cash used in financing activities during the consolidated fiscal year was ¥90 million (a decrease of ¥1,627 million in cash outflows from the previous consolidated fiscal year). This was mainly attributable to ¥525 million in proceeds from long-term borrowings, ¥378 million in payments for repayment of long-term borrowings and ¥153 million in dividend payments.」
The company raised ¥525 million through long-term borrowings and repaid ¥378 million in long-term borrowings, substantially reducing cash used in financing activities from ¥1,718 million in the previous fiscal year to ¥90 million. On-hand funds also increased by ¥996 million. - FY2024-Q2AdvancedAnnual report
「Cash used in financing activities during the six months ended the second quarter was ¥358 million, a decrease of ¥1,019 million in cash outflows from the same period of the previous year. This mainly reflected cash outflows of ¥202 million for repayments of long-term borrowings and ¥153 million in dividend payments.」
As part of the cash-flow improvement process, including asset sales, refinancing and amended repayment terms, the company also repaid ¥202 million in long-term borrowings during the cumulative quarter. Cash and cash equivalents increased by ¥367 million from the end of the previous fiscal year to ¥1,898 million. - FY2023AdvancedAnnual report
「Cash used in financing activities during the fiscal year was ¥1,718 million, an increase of ¥878 million in cash outflows from the previous consolidated fiscal year. This mainly reflected cash outflows of ¥1,482 million for repayments of long-term borrowings, ¥139 million in fees paid, and ¥95 million in dividend payments.」
As part of the cash-flow improvement process, including asset sales, refinancing and amended repayment terms, the company repaid ¥1,482 million in long-term borrowings during the full fiscal year and proceeded with the reduction of interest-bearing debt. - FY2023-Q3AdvancedAnnual report
「Cash used in financing activities during the cumulative third quarter was ¥1,378 million (an increase of ¥917 million in cash outflows year on year). This was mainly attributable to ¥1,280 million in payments for repayment of long-term borrowings and ¥95 million in dividend payments.」
As part of the cash-flow improvement process, including asset sales, refinancing and amended repayment terms, the company repaid ¥1,280 million in long-term borrowings, and total liabilities decreased by ¥1,604 million from the end of the previous fiscal year. - FY2023-Q2AdvancedAnnual report
「Cash used in financing activities during the cumulative second quarter was ¥1,378 million (an increase of ¥917 million in cash outflows year on year). This was mainly attributable to ¥1,280 million in payments for repayment of long-term borrowings and ¥95 million in dividend payments.」
As part of the cash-flow improvement process, including asset sales, refinancing and amended repayment terms, the company repaid ¥1,280 million in long-term borrowings during the cumulative period. Total liabilities also decreased by ¥1,167 million from the end of the previous fiscal year. - FY2023-Q1AdvancedAnnual report
「This was because the company planned to make early repayments of long-term borrowings, while current liabilities increased by ¥131 million, mainly due to an increase in long-term borrowings due for repayment within one year, and non-current liabilities decreased by ¥508 million, primarily due to a decrease in long-term borrowings.」
As part of cash-flow improvement measures including asset sales and amended repayment terms, the company planned early repayment of long-term borrowings, reducing non-current liabilities by ¥508 million. - FY2022AdvancedAnnual report
「This was mainly attributable to ¥818 million in payments for repayment of long-term borrowings, ¥735 million in proceeds from long-term borrowings associated with the refinancing of short-term borrowings, and a net decrease of ¥747 million in short-term borrowings.」
The company repaid ¥818 million in long-term borrowings, raised ¥735 million through long-term borrowings in connection with the refinancing of short-term borrowings, and reduced short-term borrowings by ¥747 million on a net basis. Measures to improve its financial position through a combination of asset sales, refinancing and repayments are progressing. - FY2022-Q2RestatedAnnual report
「The company refinanced ¥500,000 thousand borrowed from Sumitomo Mitsui Banking Corporation on 15 July 2020 on 15 July 2021 as follows. T.S. Central Shipping Co., Ltd., a subsidiary of the company, amended the repayment terms for ¥734,610 thousand of borrowings with four financial institutions on 19 July 2021. The final repayment deadline was changed from 25 July 2021 to 25 July 2022.」
The company disclosed as a material management contract the refinancing of ¥500 million of borrowings with a maturity date of 30 April 2026 and the change in the final repayment deadline for ¥734,610 thousand of borrowings to 25 July 2022. - FY2022-Q1AdvancedAnnual report
「The company refinanced ¥500,000 thousand borrowed from Sumitomo Mitsui Banking Corporation on 15 July 2020 on 15 July 2021 as follows. T.S. Central Shipping Co., Ltd., a subsidiary of the company, amended the repayment terms for ¥734,610 thousand of borrowings with four financial institutions on 19 July 2021. The final repayment deadline was changed from 25 July 2021 to 25 July 2022.」
As a subsequent event, the company disclosed in specific terms the refinancing of ¥500 million and the amendment of the repayment terms for ¥734,610 thousand of borrowings, changing the final repayment deadline to 25 July 2022. - FY2021AdvancedAnnual report
「We obtained a deferral from financial institutions of principal repayments on certain borrowings and a new working-capital loan, and sold one real-estate property and one ocean-going vessel, applying the proceeds to repayment of interest-bearing debt.」
The cash-flow improvement measures combining asset sales, repayment deferrals and new working-capital borrowings have progressed, with the proceeds from the sale of one real-estate property and one ocean-going vessel being applied to repayment of interest-bearing debt. - FY2021-Q3AdvancedAnnual report
「We obtained a deferral from financial institutions of principal repayments on certain borrowings and a new working-capital loan, and sold one real-estate property and one ocean-going vessel, applying the proceeds to repayment of interest-bearing debt.」
The cash-flow improvement measures involving asset sales and amended repayment terms have progressed, and the proceeds from the sale of one real-estate property and one ocean-going vessel were applied to repayment of interest-bearing debt. NIKKEI VERDE was sold in November 2020, and debt decreased by ¥1,752 million from the end of the previous fiscal year. - FY2021-Q2AdvancedAnnual report
「We obtained a deferral from financial institutions of principal repayments on certain borrowings and a new working-capital loan, and sold one real-estate property, applying the proceeds to repayment of interest-bearing debt. T.S. Central Shipping Co., Ltd., our consolidated subsidiary, entered into a contract on 9 July 2020 to sell one bulk carrier owned by the company. Transfer date: November 2020.」
The cash-flow improvement measures involving asset sales and debt repayment have progressed, and the proceeds from the sale of one real-estate property were applied to repayment of interest-bearing debt. In addition, a sale contract for NIKKEI VERDE was signed on 9 July 2020, with the transfer scheduled for November 2020. - FY2021-Q1AdvancedAnnual report
「Meanwhile, we plan to reduce interest-bearing debt relating to existing borrowings. Specifically, we have entered into a contract for the sale of the vessel NIKKEI VERDE and a transfer agreement for rental real estate. We plan to use the proceeds from these sales to repay interest-bearing debt, or borrowings, and release the collateral assets provided, namely marketable securities and real estate, thereby increasing on-hand liquidity.」
The asset-sale and debt-repayment plan presented in the FY2020 annual report has become more concrete, with a contract for the sale of NIKKEI VERDE and a transfer agreement for rental real estate having been signed. In subsequent events, the vessel sale is stated to be scheduled for December 2020 rather than September 2020, the real-estate sale for August 2020, and the gain on transfer at approximately ¥277 million. - FY2020First statedAnnual report
「To reduce interest-bearing debt, which remains at a high level, we will sell assets, including certain vessels, and use the proceeds to make early repayments of the remaining borrowings for the construction of certain vessels. This will reduce subsequent repayment amounts, while the release of collateral assets will help optimize on-hand liquidity. We have also obtained the consent of financial institutions to defer repayment of most borrowings. For certain balloon repayments after the deferral period, we are considering further asset sales, including the returned collateral assets, such as marketable securities and real estate, to provide funds for repayment.」
As measures to address declining on-hand liquidity and high interest-bearing debt, this is the first systematic presentation of a cash-flow improvement plan combining asset sales, including vessels, early repayment of borrowings, release of collateral, and repayment deferrals and balloon-repayment measures agreed with financial institutions.